Smallcap funds have emerged as the best-performing equity mutual fund category over the last three months, delivering an average return of 16.94%, according to an analysis by ETMutualFunds. The sharp rally comes after a period of correction earlier this year, with improving earnings, renewed investor interest, and strong liquidity supporting the recovery in the small-cap space.
However, the strong performance has also raised questions among investors about whether they should increase their allocation to small-cap funds after the rally, wait for better entry opportunities, or book profits?
